Buying Guide

How much money do I need to buy a house in Florida?

The short answer: you can buy a home in Florida with as little as 3.5% down (FHA loan) or even zero down (VA or USDA loans), plus closing costs of 2-5% of the purchase price. On a $350,000 home, that means you need between $12,250 and $24,500 total to close — and Florida's down payment assistance programs can cover a significant chunk of that.

House keys representing home ownership in Florida

Down payment options in Florida

How much you need to put down depends entirely on the type of loan you qualify for. Here are the most common options for Florida homebuyers:

FHA Loan — 3.5% down

FHA loans are the most popular option for first-time buyers. You need a 3.5% down payment and a minimum credit score of 580. On a $350,000 home, that's $12,250 down. FHA loans are insured by the Federal Housing Administration and allow higher debt-to-income ratios, making them more accessible for buyers with student loans or other debt.

Conventional Loan — 3% to 5% down

Conventional loans backed by Fannie Mae or Freddie Mac offer 3% down programs for first-time buyers (HomeReady and HomePossible). With a 620+ credit score, you can put down as little as 3%. If you put down less than 20%, you'll pay private mortgage insurance (PMI) until you reach 20% equity.

VA Loan — 0% down

If you're a veteran, active-duty service member, or qualifying spouse, VA loans require zero down payment and no PMI. This is the single best loan program available, and Florida has a large veteran population who take advantage of it.

USDA Loan — 0% down

USDA loans are available for homes in eligible rural and suburban areas — and yes, parts of Palm Beach County qualify. Zero down payment, low interest rates, and reduced mortgage insurance. Income limits apply.

Closing costs: what to expect

Closing costs in Florida typically run 2% to 5% of the purchase price. On a $350,000 home, that's $7,000 to $17,500. These include:

  • Loan origination fees — 0.5% to 1% of the loan amount
  • Title insurance and escrow fees — roughly $1,500 to $3,000
  • Appraisal fee — $400 to $700
  • Home inspection — $300 to $600
  • Prepaid property taxes and insurance — varies by property
  • Recording fees and transfer taxes — a few hundred dollars

You can often negotiate with the seller to cover some or all of your closing costs, especially in a buyer's market or if the home has been on the market for a while.

Florida down payment assistance programs

Florida has some of the best buyer assistance programs in the country. These can dramatically reduce how much cash you need to bring to closing:

  • Florida Hometown Heroes Program — up to $35,000 in down payment and closing cost assistance for eligible first-time buyers, including teachers, healthcare workers, law enforcement, and veterans
  • FL Assist — $10,000 in down payment assistance in the form of a 0% deferred second mortgage (no payments required, forgiven after a certain period)
  • Florida First (formerly Florida HFA) — competitive interest rate first mortgage combined with a second mortgage for down payment help
  • Mortgage Credit Certificate (MCC) — a federal tax credit worth up to $2,000 per year on mortgage interest paid
  • SALUTE — down payment assistance for veterans and active-duty military
  • Local county programs — Palm Beach County and other local governments offer additional assistance programs

Many of these programs can be stacked together. For example, you might qualify for Hometown Heroes plus an MCC, significantly reducing your out-of-pocket costs.

The bottom line

For a typical first-time buyer in South Florida, you can realistically expect to need between $10,000 and $25,000 in cash to close on a $300,000 to $400,000 home. With down payment assistance programs, that number could drop to $5,000 or even zero. The key is getting pre-approved and working with a lender who knows Florida's programs inside and out.

Next steps

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